Exhibit 2-8 Production Possibilities Curve Data

question 40

Multiple Choice

Exhibit 2-8 Production possibilities curve data

• A) the quantity of consumer goods produced can never be zero.
• B) the labor force in the economy is homogeneous.
• C) greater amounts of capital goods must be sacrificed to produce an additional 2 units of consumer goods.
• D) a graph of the production data is a downward-sloping straight line.

	A	B	C	D	E	F
Capital goods	15	14	12	9	5	0
Consumer goods	0	2	4	6	8	10

As shown in Exhibit 2-8, the concept of increasing opportunity costs is reflected in the fact that:

---

Definitions:

Intellectual Capital

The intangible value of a business, covering its people (human capital), the value relating to its relationships (relational capital), and everything that is left when the workers go home (structural capital), which includes the proprietary knowledge.

Collective Brainpower

The combined intelligence, creativity, and problem-solving abilities of a group or team.

Workforce

The collective group of employees working in an organization or sector, encompassing various roles, skills, and backgrounds.

Knowledge Workers

Employees whose primary job involves processing and making decisions based on information, such as programmers, engineers, and scientists.